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Responsible Sourcing and Operational Excellence

By measuring, managing and improving the performance and safety of our operations, we reduce our costs, increase our efficiency and minimize our risk. We believe sustainability is critical a lever of operational excellence, therefore employee engagement and commitment to continuous improvement are key to our operational success. At Mercury, we are dedicated to continuous efficiency improvements, maintaining ethical standards and introducing innovative processes and technologies that increase safety while reducing risk.
 

 

About our Supply Chain

Maintaining strong relationships with our approximately 1,350 suppliers, as well as continuing to develop our small businesses program, is essential to our mission of providing outstanding support to our customers. Our diverse customer base, requirements for services and need for varied materials require us to work with suppliers both large and small who can offer capabilities and unique solutions while providing the best value.

As a leading commercial provider of secure sensor and safety-critical mission processing subsystems, Mercury has a diverse supply chain that varies based on the types of contracts we have from prime defense contractors, commercial customers and government entities. We strive to source from local and domestic suppliers whenever possible.  

 

Supply Chain Management

It is the mission of our procurement program to utilize our robust mix of people, leadership practices and tools to enhance the value for our customers while keeping us competitive in the marketplace. Our sourcing practices allow us to drive and deliver innovative solutions and services. Our procurement program enables us to find the right products and services at the right price, all while ensuring that our suppliers meet our ethical standards. Our supplier expectations with regards to sustainability, social responsibility and ethics are included in our standard contract terms and conditions.

We expect our suppliers to comply with all local environmental, health and safety regulations.  Further, we expect our suppliers to not engage in the discrimination of employees or discriminate in the selection of lower-tier suppliers on the basis of sex, race, color, age, religion, creed, sexual orientation, national origin or citizenship, ancestry, disability, marital status, gender identity, military or veteran status, or any other basis protected by law.

Abiding by the highest standards of business ethics is an essential component of all of our supplier relationships. We adhere to the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulations Supplement (DFARS), as applicable, when purchasing direct-charge, non-commercial items or services. Supplier compliance is mandated with certain regulations and laws, including clauses that address:

  • gratuities
  • cancellation, rescission, and recovery of funds for illegal or improper activity
  • price or fee adjustment for illegal or improper activity
  • whistleblower protections under the American Recovery and Reinvestment Act of 2009
  • utilization of small business concerns
  • notice to the government of labor disputes
  • equal opportunity
  • combating human trafficking 
  • hazardous material identification and material safety data
  • contractor policy to ban text messaging while driving
  • conflict minerals 

We are regularly solicited by our customers to complete supplier questionnaires. These questionnaires are part of supply chain sustainability programs that our customers are operating in an effort to improve their own sustainability. By complying, we provide valuable information on a wide range of sustainability areas, including cyber security, environmental compliance, human rights, fair labor practices and health and safety issues.

 

Supplier Selection

Our supplier selection criteria are based on specific customer requirements, with an emphasis on suppliers that offer strategic and competitive pricing, quality products and services, focus on continuous improvement and commitment to performance in delivery of goods or services.

Our suppliers are reminded of our commitment to conduct business with uncompromising integrity. This commitment is clearly established in our Code of Business Conduct and Ethics and our Foreign Corrupt Practices & Anti-Bribery Program.  We require suppliers to conduct themselves in a manner consistent with the principles of our Code of Business Conduct and Ethics and in accordance with our Foreign Corrupt Practices & Anti-Bribery Program.  In addition, we encourage our suppliers to establish proactive and meaningful ethics and compliance programs within their organizations.  We want our suppliers to understand, foster, and mirror the ethical conduct we expect from our employees in all business transactions.

 

Small Businesses

We provide opportunities for small businesses to engage with us as we support our customers in the aerospace, defense and intelligence markets.  We work closely with many categories of small businesses, including small disadvantaged, women-owned, veteran-owned, service-disabled veteran-owned and historically underutilized business zone (HUBZone) companies.

Our small business approach has three main areas of focus:

  • performing proactive marketing and outreach activities through our small business program;
  • fostering relationships with small businesses that lead to subcontracting and prime contracting opportunities; and
  • providing business development assistance to small businesses - particularly minority-, women- and veteran-owned small businesses - to help them acquire the tools to grow and succeed.

Small Business Commitment Statement

An integral part of the Mercury Systems, Inc. strategy is our commitment to small business utilization. We recognize that small business partners contribute to our ability to deliver innovative solutions, rapid time-to-value and world-class service and support to our prime contractor customers.

Mercury Systems has built the most contemporary portfolio of proven solutions within the defense electronics industry. We work diligently to identify and partner with small businesses that bring value to our customers -- small disadvantaged, woman-owned, HUBZone, veteran, and service disabled veteran-owned small businesses.

By allocating resources to the mission of outreach, we proactively further our strategy of partnering with small businesses. Our commitment is supported through policy and executive leadership.

It is through these efforts that Mercury Systems, Inc. has been and will continue to be committed to its small business programs providing small businesses the maximum practicable opportunity to participate in the performance of Federal Government contracts under which Mercury is performing.

 

Conflict Minerals

The California Transparency in Supply Chains Act requires certain manufacturers doing business in the State of California to disclose their efforts to eliminate the use of slave labor and human trafficking from their supply chains.

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This conflict minerals report for the year ended December 31, 2017 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934, as amended.

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This conflict minerals report for the year ended December 31, 2018 is presented to comply
with Rule 13p-1 under the Securities Exchange Act of 1934, as amended.

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The purpose of this document is to collect sourcing information on tin, tantalum, tungsten and gold used in products.

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